Joint Implementation (JI) and Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC):
| Parameter | JI | CDM |
|---|
| Objective | To help Annex I countries meet their emissions reduction targets by investing in emission reduction projects in other Annex I countries | To help Annex I and non-Annex I countries meet their emissions reduction targets by investing in emission reduction projects in non-Annex I countries |
| Applicability | Between Annex I countries only | Between Annex I and non-Annex I countries |
| Project Type | Emission reduction or removal projects in the energy sector and industry | Emission reduction or removal projects in any sector |
| Additionality | Projects must result in emission reductions beyond what would have happened without the project | Projects must be additional to any that would have happened anyway |
| Crediting Period | Maximum of five years with possibility of renewal | Maximum of 10 years with no possibility of renewal |
| Project Cycle | Host country approves the project and submits a report to the JI Supervisory Committee for approval | Host country approves the project and submits a report to the CDM Executive Board for approval |
| Emission Reduction Units (ERUs) | Issued for each tonne of CO2 equivalent reduced or removed | Issued for each tonne of CO2 equivalent reduced or removed |
In summary, JI is a mechanism designed to facilitate emissions reductions between Annex I countries only, whereas CDM is a mechanism designed to facilitate emissions reductions between Annex I and non-Annex I countries. The types of projects eligible for each mechanism are also different, with JI focused on emission reduction or removal projects in the energy sector and industry, while CDM allows for projects in any sector. Both mechanisms require additionality, but JI has a maximum crediting period of five years with the possibility of renewal, while CDM has a maximum crediting period of 10 years with no possibility of renewal. Finally, both mechanisms issue carbon credits (ERUs) for each tonne of CO2 equivalent reduced or removed, but they are used in different ways based on the mechanism used.
